The impact of digital transformation on risk-taking in Vietnamese commercial banks: The moderating role of state ownership
Abstract
This study focuses on the moderating role of state ownership in the impact of digital transformation on risk-taking in Vietnamese commercial banks. The r esearch data was gathered from the audited financial statements of 27 Vietnamese commercial banks as well as the World Bank database from 2011 to 2021. The estimation results using the two-step system GMM method provide additional empirical evidence on the inverse relationship between digital transformation and risk-taking in the banking sector , while also indicating that state ownership can be considered an important moderating factor that assists banks in implementing digital transformation to minimize risks. The research findings serve as the foundation for suggesting policy implications that Vietnamese commercial banks must encourage digital transformation in order to enhance risk control capabilities, create a technology-integrated risk management framework , and increase staff proficiency in using digital technology . Additionally, it is necessary to increase state participation in the banks’ digital transformation process and take into consideration maintaining a reasonable level of state ownership to balance the objectives of financial safety, technology application and more effective risk reduction.